INTERNET banks in the 10th Federal Reserve district seem to have
profitability experiences similar to those of nonInternet banks, reports
a Fed economist, even though their expenses are significantly higher.
"Internet banks appear to be successful at generating sufficient
revenue, such as fee income, to overcome additional expenses,"
reports economist Richard J. Sullivan in "Financial Industry
Perspectives 2000." Sullivan says banks do better with Internet
banking when they introduce into markets with the right demographic and
economic characteristics and when it complements their business